Are interest-only mortgages a good idea?
October 11th, 2010 Interest-only mortgages can be an attractive option for home buyers experiencing difficulty finding a mortgage because of a low income. Such home buyers do have a number of options, including discounted rates, longer terms, and interest-only mortgages. These are all reasonable ways to start the home-ownership process, but it should be remembered such options will increase the total cost of the home over the life of the loan. Interest-only mortgages require repayments on the mortgage interest but not the actual principal. There are two main types of such home loans, investment-backed loans and temporary interest-only loans. Most homeowners who are considering an interest-only mortgage as a way of reducing the early costs of purchasing a home will be looking at the temporary interest-only mortgages. The temporary interest-only mortgage requires interest repayments only be made for an introductory period, which is usually between one and five years, although it can be f
